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HMRC internal manual

VAT Registration

From
HM Revenue & Customs
Updated
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Entity to be registered: European Economic Interest Groupings (EEIGs): definition of an EEIG

An EEIG is an association formed by businesses or enterprises from at least two EU Member States with the aim of encouraging co-operation across national boundaries and between similar businesses. The EEIG is intended to facilitate or develop the business activities of its members and to improve or increase the results of those activities. Its purpose is not to make profits for itself. It may only engage in activities which

  • are related to the business activities of its members, and
  • are not more than ancillary to them (such as research and development and marketing).

An EEIG may not

  • exercise any power or management over its members’ activities (particularly in the areas of personnel, finance and investment)
  • hold shares in any kind of member’s business (the holding of shares should only be possible to the extent that it is necessary in order to achieve the objects of the grouping and if they are held on behalf of the members)
  • employ more than 500 people
  • make loans to directors of member companies (where the making of such loans would be against the company law of the member State) or get involved in transfer of property between companies and its directors or other associated persons, or
  • be a member of another EEIG.